Morgan Stanley analyst Simeon Gutman maintains $Petco Health and Wellness (WOOF.US)$ with a hold rating, and adjusts the target price from $5 to $6.
According to TipRanks data, the analyst has a success rate of 61.1% and a total average return of 3.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Petco Health and Wellness (WOOF.US)$'s main analysts recently are as follows:
Petco's strategic initiatives aimed at business improvement are taking shape, and there are signs of stabilization. However, the risk/reward remains wide, suggesting a significant upside and downside potential in their respective optimistic and pessimistic scenarios.
Petco's Q3 results exceeded expectations in comparable sales and EBITDA, though its Q4 guidance was somewhat disappointing. The conservative forecast for Q4, considering the evolving market conditions, may have underlying potential as the company's emphasis on profit-first strategy is beginning to reflect margin improvements driven by supply chain savings and operational efficiencies.
Petco's third-quarter update appears positive, however, there is a noted hesitation to pursue further due to below-average guidance for the fourth quarter, limited visibility, and significant outstanding tasks.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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